Former boss Fernando Santos left his post after their FIFA World Cup second-round exit, following a penalty shoot-out defeat to Costa Rica.
George Sarris, the president of the Greek Football Federation (HFF), insisted continuity was the key in the wake of their elimination, and on Friday it was announced that Ranieri had been appointed as Santos' successor.
"Claudio Ranieri signed a two-year contract with the Greek Football Federation and is the new coach of the national team," a statement on the federation's official website read.
"The Italian coach, with service in many major European clubs, is expected to lead our representative group to new successes [in] Euro 2016."
Ranieri has vast experience at a number of clubs throughout his career, and was the first manager to enjoy the wealth brought to Chelsea by Russian billionaire Roman Abramovich.
Since then, the 62-year-old has managed the likes of Valencia, Juventus, Roma, Inter and Monaco, although he is yet to clinch a top-flight league title in any of his roles.
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